Intrinsic value of option is $280 and the price of option is $350 then the time value of option is?
A. 45
B. 70
C. 123
D. 245
FINANCE MCQS
Business finance MCQs with answers for online tests. MCQs on financial management with answers for test preparation. Basic finance multiple-choice questions for all competitive exams.
In interest rate swap transaction, the party who pays the fixed payments of interest is classified as ____ ?
A. swap buyer
B. swap seller
C. notion buyer
D. notion seller
Form of market efficiency which states that prices of stock reflects the public and private information of the firm is classified as ____ ?
A. semi-strong form market efficiency
B. expensive form market efficiency
C. weak form of market efficiency
D. strong form of market efficiency
type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as _______ ?
A. cumulative preferred stock
B. non-cumulative preferred stock
C. non participating preferred stock
D. participating preferred stock
Prospectus which describe the new securities are distributed before their registration is classified as _____ ?
A. securitized prospectus
B. red herring prospectus
C. white herring prospectus
D. preemptive prospectus
Swaps that are classified as long term contracts are _____ ?
A. floating swaps
B. fixed swaps
C. currency swaps
D. notion swaps
Capital gains and dividends are considered as components of ____ ?
A. spot rate contracts
B. forward rate contracts
C. return
D. equity
feature of stock which allows stock holders to buy the shares below than market price is called _____ ?
A. rights offering
B. stock offering
C. shares offering
D. price offering
Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as _____ ?
A. characteristics of claimed stock
B. characteristics of preferred stock
C. characteristics of fundamental stock
D. characteristics of common stock
Periodic payments of dividends are subtracted from return to stockholders to calculate _____ ?
A. loss on capital
B. gain on capital
C. gain on spot contract
D. loss on spot contract